When was the last time you studied your operating expense bill from your landlord in detail?
ECR’s Tenant Representation group will provide a review of the landlord’s annual operating expense reconciliation report. The review may uncover outliers or errors, which can save clients money and/or provide them with preliminary information to request an audit. This initial analysis is provided to clients at no cost and no commitment. It is just one of the ways ECR evens the playing field.
What is an Operating Expense Analysis
An Operating Expense analysis is a value-add service for clients that we offer as part of our on-going commitment to providing the most value before, during, and long after a lease is signed. We believe this level of service from your broker is necessary and should be expected when looking to improve your bottom line.
Reviewing your current operating expense reconciliation statement and comparing it to the definition of operating expenses in your lease, as well as against the historical reconciliation statements from prior years, can help you by determining:
Is the landlord correctly calculating escalations, caps, and gross-up for your lease?
Were you billed correctly?
How your building’s operating expenses compare to similar buildings in your submarket and are there outliers that need further analysis?
The Bottom Line
Operating Expense calculations are surprisingly complex. Through ECR’s experience in reviewing lease terms, billings and miscalculations, we know where to look for errors that can result in tangible dollars saved.
Ready to connect with a broker to represent you and your business?
The brokerage team at ECR is the best that I’ve worked with in any market. They are strategic, responsive, and always put the work in to turn something around quickly. We are venture-backed, so it’s a constant challenge to balance adding space when we need it and not over-committing. They have made it easy, and I look forward to solving the next challenge with their help.
From the beginning, the team at ECR took the time to understand our specific circumstances and evolving needs. ECR worked diligently to come up with an array of solutions, one of which allowed us to remain in our current space while taking on additional, neighboring spaces over time as we scaled. ECR helped negotiate terms that allowed us to match our lease commitments to our hiring plan and in turn, meet our budget requirements.
ECR helped locate potential spaces in our preferred locations and with a range of budget options. They were very helpful with office tours and helping us figure out what exactly we’d need - both with the physical space and possible renovations - which was helpful during the office search. When we decided it would be a better choice for us to stay in our current spot than build out in a new location, ECR was able to help negotiate better terms for the renewal than we would have been able to achieve on our own.